Trade Verifications are regularly carried out by the Canada Border Services Agency to ensure businesses are compliant with import rules and regulations. The agency publishes its verification priorities twice a year – in January and July – to provide importers with advance notification about customs audits. Companies can use this listing as a timely prompt to review their own internal trade compliance practices and, if necessary, modify them accordingly.
What is the CBSA Verification Program?
Verification is managed in two ways, by random verifications or verification priorities. Some priorities carry over from one year to the next and some, like those looking into the valuation of footwear and apparel, are perennial. The overall goal of these verifications is both to enforce compliance with customs requirements and ensure that the correct amount of duties is being assessed.
In addition to verification priorities that are determined by risk-based, long-term processes (with new targets added during the year), CBSA also undertakes random verifications, which help it measure compliance rates and estimate potential revenue loss.
2022 July Verification Priorities
The priorities released as of July 2022 for Tariff Classifications, Valuation, and Origin are as follows:
- There are no active origin verification priorities at this time.
Expandable details such as Targeted companies, Cases closed Cases in error, Percentage non-compliance, Duty Assessed (dollars), Penalties (dollars) Total (dollars) can be found here.
If You Import Targeted Goods, What Should You Do?
The likelihood of your import(s) being selected for an audit if you are importing commercial products specifically identified on CBSA’s Trade Compliance Verifications list obviously increases significantly.
In such cases, being proactive and immediately conducting a review or internal audit will help to avoid any unwelcome surprises down the line. In addition to mitigating the risk of incurring Administrative Monetary Penalties for non-compliance, this approach has the advantage of ensuring that your internal records are current and readily accessible in the event that CBSA requests them.
Our Global Trade Services Team can assist your company with a preliminary review or a complete internal audit. Additionally, our Trade Specialists can provide you with professional guidance to help improve your overall trade compliance profile with the CBSA.